The Gum Creek Gold Project covers approximately 800 km2 of the Gum Creek Greenstone Belt located in the East Murchison Province of Western Australia. Four types of gold mineralisation are present in the belt including both free milling and refractory mineralisation types. A Scoping Study completed in early 2016 evaluated open-pit production from the free milling resources only, to reduce the initial construction capital while retaining optionality of production from the refractory resources at a later date.
Historic gold production from free milling sources at Gum Creek was more than one million ounces at high metallurgical recoveries. The process plant is designed to handle throughput of 800,000 tonnes per annum with a three-stage crush, ball mill, gravity circuit, cyanide leach and elution circuit.
The Howards deposit was included in the Scoping Study and is covered by Sandstorm’s royalty. The gold mineralization at Howards is typically associated with sulphide poor quartz veins of 1–3 metre thickness, within a shear zone up to 50 metres wide in mafic host rocks. Coarse free gold is often present in the veins. The Indicated and Inferred Resources estimated at Howards are 5.3 Mt at 1.1 g/t gold and 0.7 Mt at 1.0 g/t gold respectively as of July 2013 (0.4 g/t cut-off ). Metallurgical testwork undertaken on Howards mineralization resulted in average recoveries of 91%.
Sandstorm’s royalty also covers the Orion deposit which was not considered as an ore source in the Scoping Study.
As part of a reverse circulation (“RC”) drill program completed during the first quarter at Gum Creek to test regional exploration targets, a single RC hole was drilled at Howards. This hole targeted an IP anomaly similar to that associated with the Howards deposit. Patchy disseminated pyrite similar to the Howards’ style of mineralization was intersected throughout the hole, but without significant associated gold mineralization.